Massachusetts’ Nation-Leading Three-Year Energy Efficiency Plan Approved

Plan Will Deliver Billions in Benefits to Residents and Businesses through Mass Save®

BOSTON – The Department of Public Utilities (DPU) today issued an Order approving the 2019‑2021 Three‑Year Energy Efficiency Plan of the Commonwealth’s electric and gas distribution companies and the Cape Light Compact, which sets energy saving targets and budgets for the Mass Save® programs. The plan’s ambitious energy saving targets represent a significant change in energy efficiency programs and has the highest gas efficiency goal to date in Massachusetts.  The combined electric energy and gas efficiency plans will cut greenhouse gas emissions and ultimately achieve over $8 billion in customer benefits. Through this order, the plan will be immediately implemented into the Mass Save® programs for the next three years. 

“The Three‑Year Energy Efficiency Plan is a critical element of Massachusetts’ strategy to meet climate goals set under the Global Warming Solutions Act and reinforces the Commonwealth’s standing as a national leader in energy efficiency,” said Governor Charlie Baker. “Energy efficiency is the most cost-effective way to achieve environmental benefits while lowering energy costs and we look forward to working with all stakeholders to implement this plan.”

The Three‑Year Plan was developed through a comprehensive and collaborative effort involving the Energy Efficiency Advisory Council.  The Council, chaired by the Commissioner of the Department of Energy Resources (DOER), represents a broad spectrum of stakeholder perspectives, including, but not limited to the Massachusetts Department of Environmental Protection, Department of Housing and Community Development, low-income advocates, advocates for both large and small businesses and environmental groups.

“The Department of Public Utilities’ approval of the Three Year Energy Efficiency Plan will have direct benefits to customers, the environment and the economy,” said Energy and Environmental Affairs (EEA) Secretary Matthew Beaton. “Energy efficiency measures are the most cost-effective option for ratepayers to lower their energy bills, providing reduced energy costs for businesses and homeowners while simultaneously helping Massachusetts meet its clean energy and climate goals.”

The plan shifts electric programs to recognize the benefits of strategic electrification, and for the first time in Massachusetts offers incentive programs for fuel switching – targeting oil and propane customers for fuel conversion to more efficient and affordable heating fuels and technologies such as air source heat pumps.

Other highlights of the plan include:

• Active demand reduction programs that help offset the most expensive hours of the year to work alongside the new Clean Peak Standard;
• Passive House incentives to achieve greater energy efficiency in new construction;
• A framework for home energy scorecards through in-home energy audits, providing information to customers on the benefits of energy efficiency upgrades;
• LED streetlight conversions in municipalities; and
• Enhanced strategies and community outreach efforts targeting increased participation and savings for renters, moderate income customers and non‑English speaking customers

“This plan supports our efforts to not only change how we supply energy, but how we use energy as we shift our focus to strategic electrification and reducing peak demand in order to create a cleaner electric grid,” said DOER Commissioner Judith Judson. “These goals call for significant increase in incentives and access to energy efficiency for homes and businesses that will help us achieve a clean, affordable and resilient energy future for all.”

“The Three‑Year Energy Efficiency Plan, as approved by the Department, will enable the Commonwealth’s electric and gas distribution companies to deliver energy savings to consumers, and further efforts to reduce the cost of energy for ratepayers, increase energy efficiency, and reduce carbon emissions,” said Department of Public Utilities Chairman Angela M. O’Connor.

The energy efficiency programs in the plan are expected to reduce statewide carbon dioxide emissions, and the energy savings goals in the 2019-2021 plan once again sets nation-leading savings levels for both electricity and gas while also beginning the transition to a new multi-fuel metric to account for savings from oil and propane, and a new active demand goal to account for savings in peak hours.

This plan aligns with the recently issued Comprehensive Energy Plan (CEP), which found that thermal and transportation sector energy efficiency policies, as well as a clean electricity policies, are needed to reduce emissions, lower costs, and ensure regional reliability. In order to meet the Commonwealth’s energy and emissions objectives, the CEP recommends an energy strategy that continues to increase cost-effective renewable energy supply, prioritize electric energy efficiency and peak demand reductions and support grid modernization and advanced technologies. Many aspects of this energy efficiency plan were included in the CEP recommendations which included  policy strategies to target reductions in thermal sector consumption, drive consumer demand for energy efficiency measures, promote fuel switching from expensive, higher carbon intensive fuels to lower cost, lower carbon fuels, and invest in research and development for clean heating fuels.

The Commonwealth, which has been named the most energy efficient state in the nation by the American Council for an Energy-Efficient Economy (ACEEE) for eight consecutive years, continues to build upon its energy efficiency policies and programs, particularly the energy efficiency programs offered by the Commonwealth’s utilities under the Mass Save® brand, for leading by example with state buildings and for implementing a stretch building energy code for towns and cities and promoting combined heat and power for commercial facilities.

“Massachusetts has been a leader in leveraging energy-efficiency to reduce costs and grow our economy as we make progress towards our climate change goals set under the Global Warming Solutions Act,” said Senate President Karen E. Spilka (D-Ashland). “We must continue to take concrete steps to combat the destructive effects of global warming that have already been set in motion and build a more resilient Commonwealth for generations to come.”

“Massachusetts is a national leader in energy efficiency thanks in part to our aggressive energy-saving targets and our commitment to saving the commonwealth’s residents and businesses money and energy,” said National Grid Senior Vice President and Chief Customer Officer Terry Sobolewski and Eversource Senior Vice President and Chief Customer Officer Penni Conner on behalf of the Mass Save sponsors. “Together, we look forward to delivering our nationally-recognized energy efficiency programs and services to all of our customers over the next three years.”